Unrestrained rice market increases hardships of the lower income group

Rice mill owners are not able to pay rice at the price fixed by the government. As a result, there is no alternative but importing the product. The government has to rely on stocks to curb the price hike of rice and stocks are less this time than last year

It is hard to imagine that the price of rice is going up even in the peak season. The rice market has become quite volatile over the last few days. The price of rice has now gone beyond the purchasing power of the common people. The price of coarse rice in the market is now 48 to 50 taka which is 48 percent more than last year. The price of fine rice is 60 to 66 taka which is 17 percent more than last year. There is no logical reason for the rice market to be volatile. In view of this volatile situation in the rice market, the government is putting more emphasis on rice imports. A rice import agreement with India has already been signed. The price of Indian rice will be 30 to 35 taka per kg. There may be a proposal to reduce tariffs on private rice imports. Last year, tariffs were raised to discourage rice imports but the government is thinking of reducing the tariffs this year to give opportunities to the traders. The stock of rice in the warehouses of the Food Department is less than the last year and for this the government is emphasizing on rice import. The country produces more than three and half crore metric tons of rice annually, of which about 1 crore 40 lakh tons comes from 'Aman paddy'. Rice mill owners are not able to pay rice at the price fixed by the government. As a result, there is no alternative but importing the product. The government has to rely on stocks to curb the price hike of rice and stocks are less this time than last year.
The sudden price hike of rice causes misery to the people and creates dissatisfaction among them. Mill owners, retailers and wholesalers blame each other for price hike. If the market is not strictly controlled, everything goes to the hands of traders. Despite the supply of new rice in the market, there is no logical reason for raising the price of rice. Everyone is more or less at risk during this time of Covid-19 pandemic and they are under financial pressure. If rice is imported officially, there is a risk of loss to the mill owners and farmers. Wholesalers and retailers think that the price of rice fluctuates due to the manipulation of mill owners. News of mill owner's manipulation is heard often but they claim that the price fluctuates in the market from time to time to ensure a fair price for the farmers. Wholesalers, retailers and mill owners blame each other but the ordinary people have to pay extra. The middlemen are benefiting through manipulation and as a result farmers and consumers are facing losses. We all know that the price of a product goes up due to market syndicate. Wholesalers believe that rising rice price at mills destabilize the market. Many feel that the rice market becomes unstable as a result of not fixing prices in the wholesale market and its impact can be noticed in the retail market. The high price of rice is not being controlled even after fixing the price of rice at mill gate.
There is a tendency among a class of unscrupulous traders to stockpile rice and it is one of the reasons for the price hike of rice. The price hike of necessary commodities without any specific reasons seems to be a part of our culture and once the price goes up, it does not go down. No specific information is available about the reason for the increase of price of the products. When the price of a product goes up then the issue of syndicate comes up. There is no notable attempt to break that syndicate. Some experts think that the price of the product can be kept under control through the formation of a commission. Although mobile courts are sometimes used to control the high prices of commodities, it has not been able to bring any permanent benefits. Proper market monitoring is needed and it can be done through city corporations and municipalities. Price often goes up due to transportation costs and extortion. It is also essential to control it. It has become very important to increase the capacity of TCB. Meanwhile, in a free market economy, determining the price of goods is quite complicated. Problems can be reduced if the supply of products can be increased properly. Some traders increase the price of their products in the hope of making more profit. Mismanagement is not a new phenomenon in the market and no permanent solution can be found by running mobile courts and imposing fines. The market can be controlled by increasing huge supply of the products. Legal action should be taken against those who stockpile goods artificially and no negligence is desirable in this case. The government monitors the market through the Consumer Protection Act 2009 and Safe Food Act 2013. Most buyers and sellers do not know what is meant by the Consumer Rights Act, so the price of products cannot be controlled even if there is a law. Close monitoring is required to deal with artificial crisis of the products and if close monitoring can be done, there is no risk of increase the price suddenly. No lasting solution can be expected without taking appropriate action against the culprits.
The government as well as the consumers has a responsibility to keep the market price tolerable. Personally, if everyone starts buying more and more products, then there is more pressure on the market and as a result the price of the product goes up. So the behaviour of the consumers has to be constructive. If we have the attitude and mentality to yield to our daily needs, then there is no additional pressure on the market. Due to various complications, TCB cannot be involved in regular business activities. TCB has been kept for emergency services. In the developed countries, consumers are the controllers of the products, but a different picture is seen in our country. Our wholesalers and retailers are the main regulators of products here. The consumers are being forced to buy what they are marketing. With the passage of time and lack of proper enforcement of the law, some traders have become so strong that they have built a distribution network. As a result, market price control is becoming difficult. There is also a shortage of manpower needed to enforce consumer rights laws. In our country, consumers cannot buy the products directly from the farmers and middlemen takes this opportunity and they play a role to raise the price of products. This problem could have been solved if the conservation system had been very strong. If the market price is controlled by force, it has also some negative effects. So, favourable environment is essential. The market can be controlled if the price at which a product is being bought and the price at which it is being sold is properly monitored. In other words, it is very important to monitor the purchase and sale price of the products. Receipt and vouchers can play an important role in this regard. If the consumers decide that they will not buy the product at a higher price then a signal goes to the market which helps to keep the price in check. So the consumers must be aware. There is a stock law in the country and if it is implemented properly, it is possible to check the market. This problem can be overcome by creating suitable investment environment and controlling corruption. The procedural complexities of decision-making also need to be removed. In general, a concerted effort is needed to control the market.
The writer is Assistant Professor, B A F Shaheen College, Kurmitola, Dhaka Cantonment.

 

Unrestrained rice market increases hardships of the lower income group

Rice mill owners are not able to pay rice at the price fixed by the government. As a result, there is no alternative but importing the product. The government has to rely on stocks to curb the price hike of rice and stocks are less this time than last year

It is hard to imagine that the price of rice is going up even in the peak season. The rice market has become quite volatile over the last few days. The price of rice has now gone beyond the purchasing power of the common people. The price of coarse rice in the market is now 48 to 50 taka which is 48 percent more than last year. The price of fine rice is 60 to 66 taka which is 17 percent more than last year. There is no logical reason for the rice market to be volatile. In view of this volatile situation in the rice market, the government is putting more emphasis on rice imports. A rice import agreement with India has already been signed. The price of Indian rice will be 30 to 35 taka per kg. There may be a proposal to reduce tariffs on private rice imports. Last year, tariffs were raised to discourage rice imports but the government is thinking of reducing the tariffs this year to give opportunities to the traders. The stock of rice in the warehouses of the Food Department is less than the last year and for this the government is emphasizing on rice import. The country produces more than three and half crore metric tons of rice annually, of which about 1 crore 40 lakh tons comes from Aman paddy. Rice mill owners are not able to pay rice at the price fixed by the government. As a result, there is no alternative but importing the product. The government has to rely on stocks to curb the price hike of rice and stocks are less this time than last year. The sudden price hike of rice causes misery to the people and creates dissatisfaction among them. Mill owners, retailers and wholesalers blame each other for price hike. If the market is not strictly controlled, everything goes to the hands of traders. Despite the supply of new rice in the market, there is no logical reason for raising the price of rice. Everyone is more or less at risk during this time of Covid-19 pandemic and they are under financial pressure. If rice is imported officially, there is a risk of loss to the mill owners and farmers. Wholesalers and retailers think that the price of rice fluctuates due to the manipulation of mill owners. News of mill owners manipulation is heard often but they claim that the price fluctuates in the market from time to time to ensure a fair price for the farmers. Wholesalers, retailers and mill owners blame each other but the ordinary people have to pay extra. The middlemen are benefiting through manipulation and as a result farmers and consumers are facing losses. We all know that the price of a product goes up due to market syndicate. Wholesalers believe that rising rice price at mills destabilize the market. Many feel that the rice market becomes unstable as a result of not fixing prices in the wholesale market and its impact can be noticed in the retail market. The high price of rice is not being controlled even after fixing the price of rice at mill gate. There is a tendency among a class of unscrupulous traders to stockpile rice and it is one of the reasons for the price hike of rice. The price hike of necessary commodities without any specific reasons seems to be a part of our culture and once the price goes up, it does not go down. No specific information is available about the reason for the increase of price of the products. When the price of a product goes up then the issue of syndicate comes up. There is no notable attempt to break that syndicate. Some experts think that the price of the product can be kept under control through the formation of a commission. Although mobile courts are sometimes used to control the high prices of commodities, it has not been able to bring any permanent benefits. Proper market monitoring is needed and it can be done through city corporations and municipalities. Price often goes up due to transportation costs and extortion. It is also essential to control it. It has become very important to increase the capacity of TCB. Meanwhile, in a free market economy, determining the price of goods is quite complicated. Problems can be reduced if the supply of products can be increased properly. Some traders increase the price of their products in the hope of making more profit. Mismanagement is not a new phenomenon in the market and no permanent solution can be found by running mobile courts and imposing fines. The market can be controlled by increasing huge supply of the products. Legal action should be taken against those who stockpile goods artificially and no negligence is desirable in this case. The government monitors the market through the Consumer Protection Act 2009 and Safe Food Act 2013. Most buyers and sellers do not know what is meant by the Consumer Rights Act, so the price of products cannot be controlled even if there is a law. Close monitoring is required to deal with artificial crisis of the products and if close monitoring can be done, there is no risk of increase the price suddenly. No lasting solution can be expected without taking appropriate action against the culprits. The government as well as the consumers has a responsibility to keep the market price tolerable. Personally, if everyone starts buying more and more products, then there is more pressure on the market and as a result the price of the product goes up. So the behaviour of the consumers has to be constructive. If we have the attitude and mentality to yield to our daily needs, then there is no additional pressure on the market. Due to various complications, TCB cannot be involved in regular business activities. TCB has been kept for emergency services. In the developed countries, consumers are the controllers of the products, but a different picture is seen in our country. Our wholesalers and retailers are the main regulators of products here. The consumers are being forced to buy what they are marketing. With the passage of time and lack of proper enforcement of the law, some traders have become so strong that they have built a distribution network. As a result, market price control is becoming difficult. There is also a shortage of manpower needed to enforce consumer rights laws. In our country, consumers cannot buy the products directly from the farmers and middlemen takes this opportunity and they play a role to raise the price of products. This problem could have been solved if the conservation system had been very strong. If the market price is controlled by force, it has also some negative effects. So, favourable environment is essential. The market can be controlled if the price at which a product is being bought and the price at which it is being sold is properly monitored. In other words, it is very important to monitor the purchase and sale price of the products. Receipt and vouchers can play an important role in this regard. If the consumers decide that they will not buy the product at a higher price then a signal goes to the market which helps to keep the price in check. So the consumers must be aware. There is a stock law in the country and if it is implemented properly, it is possible to check the market. This problem can be overcome by creating suitable investment environment and controlling corruption. The procedural complexities of decision-making also need to be removed. In general, a concerted effort is needed to control the market. The writer is Assistant Professor, B A F Shaheen College, Kurmitola, Dhaka Cantonment.